MARKET SURVEY ON PROSPECTS OF CLOUD BASED ENTERPRISE SOLUTION

Submitted By: Amit Singh - 10030241051 Ankur Shah - 10030241054 Prakhar Sharma - 10030241073 Rinshi Sahai - 10030241077 Sonam Dongre - 10030241087 Swati T. 10030241089

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Certificate

This is to certify that a pilot study on Market Survey on Prospects of Cloud Based Enterprise Solution is a bonifide work carried out by the below mentioned students of 2st semester I.T Business Management (ITBM) in the partial fulfillment for the award of degress of Master of Business Administration under my guidance during the year 2010-2012.The report is approved as it satifies the academic requirements in respect of dissertation prescribed for the MBA degree. 1. Amit Singh 2. Ankur Shah 3. Prakhar Sharma 4. Rinshi Sahai 5. Sonam Dongre 6. Swati T.
(Internal Evaluator) (External Evaluator) (Director)

Date:

Place:

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ACKNOWLEDGEMENT

We would like to express our gratitude and hearty appreciation to Prof. Dr.Pransenjit Sen for his encouragement and valuable guidance in the successful completion of the project work. The business plan would not have come to a successful completion without his inspiring and constant advice. We are also grateful to the administration of SCIT, Pune for facilitating the opportunity to work on our dissertation and also thankful to Prof. S.V.K Bharathi for providing us guidance. Finally, we would like to sincerely thank our Director Dr. R. Raman, Symbiosis Centre for Information Technology, Pune for giving us the opportunity to do the pilot task. It has been a wonderful and enriching experience working on this pilot project and we will look forward to do the same in future.

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ABSTRACT
With the advent of internet, technology has reached new heights. One such technology using the benefits of internet is Cloud Computing. The term cloud computing may not have existed a few decades ago but it finds its root way back to mid 19th century. Multibillion dollar companies have been shifting to cloud computing and even mid-level enterprises have not been far behind in shifting to Cloud computing. Eminent personalities in the world of IT are discussing how cloud computing will revolutionize and change the way business is done. Cloud computing is managing the explosion of modern information. By 2012, Customers are expected to spend approximately 42 billion dollar on cloud computing. The objective of this report is to study the trends of enterprise solutions available in cloud and its future. Cloud Based Enterprise Solution (CBES) includes all IT aspects to an enterprise present in cloud for example: a leather industry also needs IT enabled project management tools, which is non core area for leather industry. Cloud can be used to outsource this vertical without hassles of IT setup. This report presents various such aspects of CBES from a vendors perspective. Also it looks at the underlying technology which drives cloud computing and the benefits we derive out of it. The analysis has been done on the basis of the online and literature survey conducted in the month of January 2011 as a part of pilot project.

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CONTENTS
1 Table of Contents
1. 1.1. 1.2. 2. 3. 3.1. 3.2. 4. 4.1. 4.2. 4.3. 5. 6. 6.1. 6.2. 6.3. 7. 7.1. 7.2. 7.3. 7.4. 8. 9. 10. Scope and Aim .............................................................................................................................................................. 48 Scope of the project ................................................................................................................................................. 48 Aim of the project .................................................................................................................................................... 48 Assumptions ................................................................................................................................................................. 49 Methodology ................................................................................................................................................................ 49 Research Methodology ............................................................................................................................................ 49 Pilot Project Approach ............................................................................................................................................. 50 Literature Review ......................................................................................................................................................... 53 Cloud ........................................................................................................................................................................ 53 Services Provided by various Vendors: .................................................................................................................... 54 Pricing Strategy: ....................................................................................................................................................... 58 Survey and Analysis: ..................................................................................................................................................... 63 Scope of development in Small and Medium Business(SMB) Market: ...................................................................... 75 Recent News in SMB market .................................................................................................................................... 75 Survey conducted for SMB market by PeoplePerHour.com .................................................................................... 75 Survey conducted for SMB market by IBM .............................................................................................................. 75 Cloud Concerns and Solutions...................................................................................................................................... 78 Integrity & confidentiality: ....................................................................................................................................... 78 Outsourcing contract with SLA:................................................................................................................................ 78 Time stamped-forensic proof Logs:.......................................................................................................................... 79 Cost & Difficulty in migration: .................................................................................................................................. 79 Conclusion: ................................................................................................................................................................... 81 References .................................................................................................................................................................... 82 Appendix .................................................................................................................................................................. 84

Questionnaire:.................................................................................................................................................................. 84

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1. Scope and Aim

1.1. Scope of the project
The survey conducted gives useful insight into vendors perspective of cloud based enterprise solution. The secondary survey ensures the feasibility in real time scenario. The pilot project is based on literature review, online survey conducted in a span of three months. The analysis is done based on the results of the surveys. Thus, due to limited sample size and limited resources, the feasibility of the study is subjected to future trend of the cloud computing.

1.2.

Aim of the project

Cloud computing is the next big game changing milestone for IT. The cloud computing technology can be exploited to provide enterprise based solutions to the organizations. Also, it can automate various business processes like payroll, human resource management, accounting etc. Thus our project tries to understand the current market trend and analyze the future trends of the cloud based enterprise solutions.

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2. Assumptions
For the purpose of pilot project The respondent is aware of the cloud computing technology The respondent has given correct information

3. Methodology
This part of documentation aims to describe methodologies used for various purposes. Research Methodology Pilot Project Approach

3.1.

Research Methodology
Primary as well as Secondary research strategies were used. Primary research methodology of Questionnaire aims to find about various aspects like Customer choices and Market trends. In questionnaire design, there are multiple ways to phrase a particular question. Closed-end, open-end, rating or ranking, single select or multiple response formats are all valid question types that have a purpose in used survey. The questionnaire was designed using close ended Questions. Close Ended question format reduces the amount of cognitive stress placed on the respondent by limiting the choices they have to consider. By its very nature this format is easier to analyze than open-ended or verbatim responses, thus limiting the amount of cognitive stress placed on the analyst. Surveys are about logic and order. Ensuring our surveys flow in a logical order is one the best practices used. Lead the respondent off with a compelling introduction that motivates them to participate (was mentioned in mail sent).

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Also, filter questions were used to ensure that only the respondents with the knowledge of cloud computing responds to the survey. Questionnaire is in APPENDIX. Secondary research methodology was utilized to find out Market Needs, and Trends as well as Growth of cloud computing was understood. Secondary research methodology includes all other resources which did not directly contribute but provided an insight and increased understanding of cloud computing market. Review of various articles, news, blogs and plethora of knowledge available through books and internet was used.

3.2.

Pilot Project Approach

Standard techniques followed for any project implementation ensure the success of project. Following are techniques used to fulfill the Pilot project. Work Break down Structure: The Work Breakdown Structure (WBS) is a tree structure, which shows a subdivision of effort required to achieve an objective; for example a program, project, and contract. The WBS may be hardware, product, service, or process oriented. A WBS can be developed by starting with the end objective and successively subdividing it into manageable components in terms of size, duration, and responsibility which include all steps necessary to achieve the objective. The Work Breakdown Structure provides a common framework for the natural development of the overall planning and control of a contract and is the basis for dividing work into definable increments from which the statement of work can be developed and technical, schedule, cost, and labor hour reporting can be established.

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Regular Meetings: The team meeting was held on weekly basis to ensure the progress and provide direction to the pilot project. Every meeting was conducted by a team member whose responsibilities are: Meeting Agenda Decided. Meeting MOM taken. Meeting take away discussed. Next Meeting Agenda Decided.

Brain Storming: It is a group creativity technique designed to generate a large number of ideas for the solution of a problem. There are four basic rules in brainstorming Focus on quantity Withhold criticism Welcome unusual ideas Combine and improve ideas

Process: Participants who have ideas but were unable to present them are encouraged to write down the ideas and present them later. The idea collector should number the ideas, so that the chairperson can use the number to encourage an idea generation. The idea collector should repeat the idea in the words he or she has written verbatim, to confirm that it expresses the meaning intended by the originator.

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 When many participants are having ideas; the one with the most associated idea should have priority. This is to encourage elaboration on previous ideas. During a brainstorming session, managers and other superiors may be discouraged from attending, since it may inhibit and reduce the effect of the four basic rules, especially the generation of unusual ideas Brain storming technique was used to take decision. This technique ensured un-biased decision making for all stages in Pilot Project. Brainstorming is not just about generating ideas for others to evaluate and select. Usually the group will, in its final stage, evaluate the ideas and selects one as the solution to the problem proposed to the group. The solution should not require resources or skills the members of the group do not have or cannot acquire. There must be a way to measure progress and success. This was made sure by WBS. The steps to carry out the solution must be clear to all, and amenable to being assigned to the members so that each will have an important role. There must be a common decision making process to enable a coordinated effort to proceed, and to reassign tasks as the project unfolds. There should be evaluations at milestones to decide whether the group is on track toward a final solution. There should be incentives to participation so that participants maintain their efforts.

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4. Literature Review
4.1. Cloud
Cloud Computing has been dominant IT news over the past few years. This term refers to any virtualized resources that are delivered as a service from data centers over the internet and that are accessible from anywhere in the world. All data and software applications that were originally located on desktops and in corporate server rooms are now being swept up and installed in the cloud or online resources. A cloud is grouped into Private Cloud or Public Cloud based on the location of the data centre where the services are being virtualized, the For private cloud, the data centre is built internally behind a firewall and not shared outside the enterprise. Full control is retained by the organization. On the contrary, in public cloud, the service providers manage the infrastructure and offer public customers the ability to deploy and consume services over the Internet. From the type of the services and its architectural point of view, there are three layers of cloud computing: SaaS, PaaS, and IaaS. Software as a Service (SaaS): Software as a service- service provider will give your users the service of using their software, especially any type of applications software. Example-Google (GOOG), Salesforce.com (CRM), Net Suite (N) Platform as a Service (PaaS): Platform as a service-service provider only provides platform or a stack of solutions for your users. It helps users saving investment on hardware and software. Google engine and Force.com provide this type of service. Infrastructure as a Service (IaaS): Infrastructure as a service- service provider bears all the cost of servers, networking equipment, storage, and back-ups. You just have to pay to take the computing service. And

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the users build their own application software. Amazon EC2 is a great example of this type of service.

4.2.

Services Provided by various Vendors:

Microsoft Business Productivity Online Suit (BPOS) There are four different products in BPOS Microsoft Exchange Online Microsoft Office Communications Online Microsoft SharePoint Online Microsoft Live Meeting Google In the Software as a Service (SaaS) space Google is a pioneer. Google's services in this space are listed below. Google email Google docs Picasa Google Calendar Google Group

Companies/ Services Software-as-Service

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Companies/ Services Platform-as-Service

Microsoft Microsoft Azure It provides an operating system and development platform to access/develop applications on Microsoft data centers. Microsoft Azure can be divided into three components: a. Windows Azure provides a Windows based environment to access/develop applications on Microsofts data centers. b. SQL Azure provides access to a relational database hosted at Microsofts data centers. c. .Net Services (also called Fabric) provide access to applications running on the cloud.

Google Google AppEngine It is a developer platform hosted on Googles cloud. The initial support on the developer platform was for Python programming language and support for Java is available now. Google has detailed documentation for both Java and Python development platform. Deploying the code to a cluster and running it is managed by Google. The database available is a non-relational database. Database can be accessed with GQL (Google Query Language). GQL has SQL like syntax. Google AppEngine enables users to build a basic web application very quickly. Configuring and setting up an application is quick and easy.

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Companies/ Services Infrastructureas-a-Service

Amazon Amazon is a pioneer and market leader in the area of Infrastructure-as-aService. Amazon suite of products in cloud computing space is called Amazon web services. Amazon S3 (Simple Storage Service) was launched in March 2006. S3 provides data storage using a simple web interface. Amazon launched S3 to improve its server utilization and to initiate another revenue stream. S3 has been extremely successful due to its low pricing and high stability. Typical uses of S3 are web hosting, image hosting, and as a back-up system. Some popular sites that use Amazons S3 are twitter, and slide share. S3FOX provides a Firefox extension that allows a Windows explorer like user interface to upload/download files. CloudBerry also offers a Freeware with Windows Explorer style interface to manage Amazon S3 accounts, files, and buckets. Free hosting reviews are available to assist with making an informed web hosting choice. Amazon SimpleDB is non-relational database hosted by Amazon. It was launched in December 2007. The database integrates well with other Amazon AWS tools. Amazon SimpleDB provides web service for running queries on structured data in real time. Relation databases like Oracle and db2 are expensive. SimpleDB provides an alternative database platform. SimpleDB uses a basic string-based query language. The syntax is straightforward but different from SQL. SimpleDB does not support some of the standard SQL features like joins, full text search, or sorting query results. No upfront investment is required. The

Rackspace Rackspace, formerly known as Mosso, is a strong vendor in the Infrastructure-as-a-Service space. According to Rackspace, 40% of Fortune 100 companies host with Rackspace. The main products that Rackspace offers are Cloud Drive offers file storage similar to Amazon's S3. Rackspace. A typical use of Storage-as-aService is for taking online backup. Rackspace Server Backup is a product similar to Cloud Drive. It allows Windows or Linux based servers to be backed up. Rackspace Server Backup encrypts, compresses, and transfers data as per defined calendar. Cloud Sites is a web site hosting product that allows web applications to scale across multiple servers based upon the demand. Cloud Servers provide complete access to a server. The offering is similar to Amazons EC2. The number of server usage can be changed over time and pricing is done accordingly. Users get root access to the Linux Servers.

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database is scalable and is accessible through web services. Amazon Elastic Compute Cloud (EC2) provides computing servers on rent, a kind of dedicated server hosting. EC2 is the Amazon's core offering in the Infrastructure-as-a-Service space. EC2 is available with a web services interface. The service is resizable, in the sense that you can increase/decrease computing capacity depending upon your needs. Amazon offers three types of virtual servers: a. Small Instance (Default) 1.7 GB of memory and 160 GB of instance storage. b. Large Instance 7.5 GB of memory and 850 GB of instance storage c. Extra Large Instance 15 GB of memory and 1690 GB of instance storage. There are more variants if you have high-CPU or high-memory requirements. Operating Systems supported include Windows Server 2003, Linux and OpenSolaris. Also supported are databases like Oracle 11g, MySQL and DB2, Application servers like Weblogic, WebSphere. Amazon also provides a Firefox extension called Elasticfox that provides a free web interface to manage EC2 servers.

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4.3. Generic Cloud based enterprise solution services

Supply Chain Management CRM/Sales Management Discrete Production Process production Tool Management Maintenance Service Management Cost Planning and Control Financial Management Data Centre Application development Extendibility, Report Customization, Integration, Business Intelligence, Mobile Computing, Security features

4.4. Pricing Strategy:

ERP Pricing Strategy: Software ERP Modules (Finance, Sales Management) Licenses Operating System RDBMS
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 Hardware Server Network Other Costs Technical implementation Back up (Disaster recovery)

Cloud Pricing Strategy: Cloud computing has been a dominant IT news item over the past few years. The companies with the help of cloud computing have found a way to increase capacity or add capabilities on the fly without investing in new infrastructure, training new personnel or licensing new software and pay for whatever they needed. According to a survey by Gartner, the Software as a Service (SaaS) market is expected to grow to 18% by 2013. Cloud computing is an attractive proposition for SMEs. The SMEs can make most of the technology available today at lower costs and lower risks. The upfront investment is low, they dont need to invest in software / hardware, licensing and renewal costs are kept to a minimum, total cost of ownership is reduced and they only pay for what they use. The three layers of cloud computing namely Saas, Paas and Iaas provide various features to the organizations implementing cloud. The following describes the features of the same: Software as a service (SAAS): Cloud application services deliver software as a service over the Internet, eliminating the need to install and run the application on the customer's own computers and simplifying maintenance and support. In the case of SaaS, the customers do not buy a license but rent the software. Infrastructure as a service (IAAS): Cloud infrastructure services delivers computer infrastructure - typically a platform virtualization environment - as a service. Rather than purchasing servers, software, data-center space or network equipment, clients instead buy those resources as a fully outsourced service. Suppliers typically bill such services on a utility computing basis and
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amount of resources consumed. Thus, the cost will typically reflect the level of activity. Platform as a Service (PAAS): Cloud platform services deliver a computing platform or solution stack as a service, often consuming cloud infrastructure and sustaining cloud applications. It facilitates deployment of applications without the cost and complexity of buying and managing the underlying hardware and software layers.

The basic pricing model for cloud based architecture is as follows: Subscription-based: Customers are charged for the same fixed-price for every certain time of period such monthly, quarterly, or annually for independent usage SoftSummit survey (2008) predicted that the overall software vendors will continue to offer this subscription model with an estimated growth of approximately 10% by 2010. Usage-based: Customers are charged based on their usage volume from several measurable metrics e.g. amount of data transferred, the time spent by customers in using the software, number of registered users accessing the software, number of completed transactions while using the solution. This is the reason why SaaS is also typical with pay-per-use basis. Advertisement model: Customers pay no costs for using the solution while the vendors earn the revenue from advertisements of third parties that are embedded on their web pages. For e.g. Google or Yahoo search engine and Google Apps like Gmail etc. Poor Billing System: A poor billing and metering system may cause the vendors to lose their customers, as the customers might feel cheated by the vendors. The billing and metering system becomes important for the vendors to track their customers usage and might also be useful for them to expand the potential of their customer base, which is useful input for their future marketing strategy. Hence, having an accurate metering and billing system that can handle the mechanism and report overall usage is crucial.
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Service Level Agreements (SLA): One of the key motivators for moving to cloud is the reduction of business risk. This is identified by the service level agreement (SLA), which is a contract between a vendor and its users which specifies the level of service that is expected during its period. They can specify bandwidth availability, response times for routine and ad hoc queries and response time for problem resolution such as network down and machine failure. SLAs can be very general or extremely detailed, including the steps to take in the event of a failure. For example, if the problem persists after 30 minutes, a supervisor will be notified; and when the problem stays after one hour, the account representative will be contacted. Price comparison between various Cloud Vendors: Companies/ Parameters Billing terms Amazon Billed monthly for compute resources consumed Amazon S3: $0.150 per GB permonth Amazon S3: $0.1 per GB Google Free quota for ninety days and then following a price budget Not Applicable Microsoft Subscriptions and pay-as-yougo Not Applicable Rackspace Pay-as-yougrow

Storage charge (IAAS) Data transfer charge (IAAS) Servers (IAAS) Services

$0.15 per GB per month $0.22/GB

Not Applicable

Not Applicable

1.7 GB/160GB of at $0.085/hour Not Applicable

Not Applicable

Not Applicable

Gmail, Google docs, Picasa are free for individual users. Organization using Google docs and GMAIL pay $50 per

Microsoft Exchange Online is priced at $5/user/ month Business productivity online suite at

256 MB/10GB at $0.015/hour Not Applicable

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Operating System and developmen t Platform

Not Applicable

user per year for using advanced features. Google AppEngine at $8/user/month

$10/ user/ month Microsoft Azure $0.12 cents/hour for computing and $0.15 cents/GB/month for storage Not Applicable

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5. Survey and Analysis:

5.1. Profiling :
Approx 24 respondents Aimed : Professional Contacts Academia Contacts (Alumni & Professor contacts) Internet ( Facebook, Forums & Sites) Received: Professional Responses Cloud Architects Project Managers/Team Members(working on Cloud projects IBM/Zenith) Academia Responses Cloud Enthusiasts Internet Cloud Enthusiasts Director Cloud Writers/Vendors Architect Questionnaire methodology was adopted to understand the market essence and likely forward strategy of cloud providers. The survey was intended for audience who has real knowledge of cloud deployment and one who are driving force for cloud services in their area of influence. Survey had 10 questions which had 18 responses and following trends were seen. For Questionnaires, please refer to Appendix A.
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5.2.

Survey Questions and Results

Question1. Layer of the cloud which is most preferred by the client:

28%

IAAS
50% PAAS SAAS 22%

Results - Shows that most availed and preferred service is Software on cloud. Generic reason for such response could be the ease of use and availability of such in market. Also, the generic issues of security, interoperability etc is seen more in other services.50% of respondents are already on SAAS, with IAAS with 28% followed by PAAS at a close percentage of 22%.

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Question2. IT services/Applications supporting business processes which are most likely to be on Cloud Ranking 1 2 3 4 5 6 7 8 Business Process Accounting CRM/Sales Management Payroll Data Centre services Application development Project management Procurements / Purchasing Human Resources Response 28% 33% 39% 28% 33% 44% 44% 33%

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100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Payroll 8 7 6 5 4 3 2 1 2 0 1

CRM / Applicatio Procureme Project Sales n Human Accountin nts / Managem Resources Managem g / Finance Developm Purchasing ent ent ent 6 3 1 4 8 1 2 1 1 2 1 1 2 1 8 1 3 2

Data Center Services 1 1 2

1
3 7 1 3

1
3 1 2 1

1
2 1 0 1

3
2 2 6 1

2
1 3 3 5

2
0 1 1 3

6
2 1 2 1

2
5 1 3 3

Results -Cloud is seen as a place for other than core functionalities to be outsourced. This question attempts to catch the key areas which are part of most of the industries and can be put in cloud. The trend shows that procurement/purchasing, project management are most likely to be on cloud services. Next cloud based on payroll, CRM/Sales Management and accounting and data centre services being next.

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Question3. Customers would prefer to purchase separate modules of an enterprise solution from multiple cloud service providers

44% 56%

Yes No

Results - Focus of this survey is CBES, intention of respondents is not to move to CBES as a service and reasons could be the integration of various parts of enterprise on cloud. Q4. Clients reason to use Cloud based enterprise Solution Ranking 1 Reasons Avoiding capital expenditure, Controlling marginal profit and costs Flexibility and Scalability Absence of IT expertise Adding redundancy to increase availability and resilience Optimization of IT infrastructure Improved computing capacity Business Continuity and Disaster Recovery Response 33%

2 3 4

33% 28% 33%

5 6 7

39% 28% 39%

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capabilities 8 Assessing feasibility of a new business model 39%

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

Avoiding Adding Business capital Assessing redundanc expenditur Optimizati Continuity y to Absence of Flexibility Improved feasibility and e,Controlli on of IT of a new increase IT and computing infrastruct Disaster ng expertise Scalability capacity business availability ure Recovery marginal model and profit and capabilities resilience costs 8 7 6 5 4 3 2 1 1 1 2 1 3 5 2 3 1 1 1 2 1 4 3 6 1 1 2 3 3 1 6 1 2 0 5 2 3 1 3 1 2 3 0 7 1 2 1 2 7 2 1 1 0 3 1 3 1 7 4 0 2 1 1 2 2 3 2 2 6 1 1 0

Results - The responses received show that major driving force to move into cloud is avoiding IT related capex. Flexibility, scalability and absence of IT expertise surprisingly is also a reason. Capex saving is always a priority whereas also easy availability of best of breed software on cloud is also a reason. Cloud provides all users with equal opportunity to use best IT environment available that too at a lower cost.

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Question5. Solution you see as the most suitable for a Small and Medium Enterprise Client, according to this possible Cloud Computing taxonomy
A federation of clouds provided by various sources (partner, private, etc) Partner Cloud (owned and managed by a trusted partner)

22%

17% 17%

Public Cloud (owned and managed by an unrelated business) Private Cloud (owned and managed internally)

44%

Results - IT scenarios are changing because of cloud presence. There are various flavors of cloud which a user can avail, Partner, Private, Public ways. Most preferred way of users in cloud is private cloud. As recently cloud is an issue for all users and is varied about it. Squaring the previous question which IT expertise and capex saving were preferred, users should ideally move to Public cloud. Future trend to be noticed is that the cloud industry has to mature into public cloud to suffice to previous answers of users i.e. the driving forces. Inspite of 4 years of exponential growth, cloud as an industry has to mature into comfortable positioning into public cloud. Next four years, of cloud emergence should be able to move to partner and then public as in when standards and maturity is seen.

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Question6. Main concerns of the clients towards using cloud computing Ranking 1 2 3 4 5 Reason Loss of control of services and/or data Performance issues Availability of services and/or data Intra-clouds (vendor lock-in) migration Cost and difficulty of migration to the cloud Lack of liability of providers in case of security incidents Confidentiality of corporate data Integrity of services and/or data Response 28% 33% 39% 28% 33%

6 7 8

44% 44% 33%

Results - There are various scenarios which are applicable to moving of users into cloud which cater to different problems/concerns of cloud. This question addresses the issues that a client faces. Survey shows that clients are most bothered about safety of their data and performance as an issue. Previous cases of loses of data seen in EC2 and such situation trigger the concern.

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Question7. Features of SAAS services provided by your organization for cloud based enterprise solution
20 18 16 Number of Respondents 14 Web Accessed via web browser Multi-Tenant

12
10 8 Scalable

6
Pay per Consumption 4 2 0 Auto-up gradation of solution Features of SAAS

This question focuses on vendor perspective of features in SAAS, trend shows that scalability, pricing and easy web access is main focus of companies in SAAS.

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Question8. Features of PAAS services provided by your organization for cloud based enterprise solution
14

12
Number of Responses 10

Ability to configure policies for working of runtime framework

Compatibility between modules developed on PAAS and local platform

8
6
Integration of modules developed across multiple PAAS

4
2 0

Generic facilities such as source code control, application testing, staging, rollout and roll-back

Easy plug and play platform

Features of PAAS
This question shows that policies, plug and play services and standard features of platform are also expected from cloud PAAS. Vendors are trying to provide easy platform in cloud. Also, moving into cloud PAAS will see features of PAAS to change as last Questions show that vendor is focusing now more on getting clients into cloud rather than sustaining them.

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Question9. Features of IAAS services provided by your organization for cloud based enterprise solution
20 18 16 14 12 10 8 6 4 2 0

Number of Respondents

Backups Load Balancing Compatibility between multiple IAAS vendors Maximum level of control of IAAS by customer Easy to use without knowing the underlying technology Smooth transition between local and cloud infrastructure

Features of IAAS

This question focuses on features of IAAS, trends show that vendors are providing much required backup and controlling power to client. IAAS being a niche area of all three IAAS, PASS and SAAS. Trend shows that generic features are expected of IAAS. Out of box feature are not intended of recent IAAS players.

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Question10. Average/estimated time frame taken to shift the entire enterprise to cloud
14

12

Less then a year

10 1-2 Years

6 > 2 Years 4

0 < 100 employees 100-500 employees 500-1000 employees > 1000 employees

CBES prospects are incomplete without knowing the time frame for moving of complete enterprise into cloud. This question intends to know the big picture of CBES in company standpoint. IT industry scenario as cloud consumer is ready to change and also other IT using companies. Question deals with industries which already have cloud transition in place. <100 employees is considered to move into cloud fastest and also average time taken for 100 to 1000 employee company is between 2 to more than 2 years. Industries with >1000 employees are considered to move into cloud at a very later stage.

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6. Scope of development in Small and Medium Business(SMB) Market:

6.1. Recent News in SMB market
Siemens launches Cloud based unified communication solution for SMB 02/03/2011 TCS bets big on iON cloud for SMBs (2011) Series of studies conducted by AMI partners show Cloud-based solutions and RMIT services to lead APAC SMB ICT spending growth in 2011 (08/02/2011) Iron Mountain Brings Enterprise-Proven, Budget-Friendly, Cloud-Based Backup to SMBs Zensar partners with Microsoft to launch Cloud based ERP solution for SMEs. Plans to transform 2000 SMEs through the hosted platform by Dec 2011

6.2. Survey conducted for SMB market by PeoplePerHour.com

PeoplePerHour.com asked 1,300 small and medium-sized enterprises (SMEs) about the technology and also found that 43 per cent are unsure of what cloud computing is. Around three-quarters of businesses do not currently use cloud computing models Major roadblock is the Infrastructure

6.3. Survey conducted for SMB market by IBM

Midsize firms are increasing their investment in IT, striking a balance between solutions that drive short term cost savings and those that enable revenue growth and stronger customer relationships. Most of the priorities can be solved by cloud solution

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As we can see, Major critical business priority among SMB is cost reduction which can be achieved through cloud computing. In survey on major IT implementations, area of cloud computing (66%), virtualization (67%) and SAAS (65%) still have 50% projects which are only planned and not implemented which mean it has lot of scope for development.
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As we can see in the survey, Cost reduction has been cited as the major reason for companies shifting to cloud. The same result is also reflected by survey conducted by us.

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7. Cloud Concerns and Solutions

This section of report presents solutions that a vendor should provide to avoid concerns of clients. Vendor as well as client can use this information presented to increase the integrity of cloud services.

7.1. Integrity & confidentiality:

Adequate & well communicated policies and practices of provider and organization. The security and privacy policies and practices of the cloud provider might not be adequate or compatible with those of the organization. This can result in undetected intrusions or violations due to insufficient auditing and monitoring policies by the cloud provider; lack of sufficient data and configuration integrity due to a mismatch between the organization's and the cloud provider's policies for separation of duty (i.e., clear assignment of roles and responsibilities) or redundancy (i.e., having sufficient checks and balances to ensure an operation is done consistently and correctly); and loss of privacy due to the cloud provider handling sensitive information less rigorously than the organization's policy dictates

7.2. Outsourcing contract with SLA:

SLA Metrics should be defined for smooth transition of complete lifecycle of cloud outsourcing. Industry accepted and used templates are available which should be utilized for Cloud outsourcing. Some Qs to be answered by SLAs for cloud are What if provider looses data? Who can see my information? How to handle data co-location? How to handle data-corruption? How easy is it to migrate data to another provider? Are we relying too much on SLAs?

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7.3. Time stamped-forensic proof Logs:

Changing the logs is the easiest way for a cloud provider to cover its tracks in case of an accident or misuse of power occurs. It is also the easiest way for malicious software and users to do the same. To properly protect against this risk, the system logs and application logs must be signed in a way such that there is undeniable, mathematical proof that they have not changed since the system or application created them. Simple data hashing cannot address this problem as the logs can be backdated. A time-based data signature is required if one is to achieve forensic-quality logs. Generic encryption and security concerns have to be addressed in CBES more effectively for maintaining integrity. CSA and other such organizations keen in establishing security standards. Cloud Service provider (CSP) should address 1. Viability Can CSP provide/meet organizations service levels for future? 2. Transparency Certifications/Compliances like HIPPA for patient details should provide reasonable transparency to the process. 3. Compliance Regulations are present in platforms like CSA (Cloud security alliance) many more should be checked. 4. Risk Analysis and management Data flow, information cycle and generic data risk handling should be in place. Architecture and model design Base design of CSP should enable the secure transaction from cloud as well as inside cloud. Details of model of CSP can ensure the data flow and interaction standards for organization.

7.4. Cost & Difficulty in migration:

Use of enterprise-class Internet application. Many web 2.0 enabled applications are present which enable real time movement of data into Cloud OS with sync from local OS like XEN and VMWare. Testing availability of cloud eases difficulty of migration. In a typical enterprise-to-cloud migration process, a corporation will identify candidate components based on drivers such business continuity, scalability or
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lower overall cost of ownership. The selection of cloud vendor then requires moving service components such as database, application servers, ESBs, and identity stores to the cloud environment. Once a full reference system is deployed in the cloud, the behavior of the enterprise application interacting with the cloud-based components has to be tested. Testing a reference system deployed in the cloud with a CSP enables an enterprise to evaluate the class of servers, memory, CPU and storage behavior in a multi-tenant environment. Payoff of between migration and usage to be known. Strategic move to cloud should be backed by financial analysis as other corporate efforts. For e.g For U.S. Navy, Generates over 300 petabytes of information per day. >1000 petabytes of information storage requirement for forensic operations. Backblaze a cloud storage hardware provider reduced the cost from $826,000/petabytes (dells price) to $117,000/petabytes (Backblazes price). The 2010 cost of 300 petabytes is $35 million, or 12 cents per gigabyte. This is much less than the total costs of the legacy disk files that are in place for thousands of Navy servers. Huge savings are therefore available immediately. Cloud simulation and migration modelling. Cloud simulation and migration modelling provides a more efficient and nimble alterative to building a full cloud-based reference infrastructure for evaluating enterprise-to-cloud migration risks. Through enterprise-to-cloud migration simulation, organizations can simulate services in the cloud prior to implementation. Simulation enables enterprises to benefit by not having to touch production code while eliminating the substantial time, capital and IT staff resource expenses related to creating a distinct cloud test environment. Simulation in hand with matrices like spin-up times check geographic latency, outages application error stages, what-if study for various operational scenarios ease the migration difficulties and also increase reliability.

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8. Conclusion:
SAAS is the most preferred solution by clients Avoiding Capex, Flexibility, and absence of IT expertise forms the major reason for shift to cloud. Loss of services/data, Availability of services, Performance Issues form the major concern of client with respect to cloud computing. SMB are moving towards cloud. Concerns need to be addressed with 3 way strategies: Client side, Vendor side and Software provider side.

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9. References
http://www.thehindu.com/sci-tech/technology/article933554.ece?service=mobile http://blog.dt.org/index.php/2009/02/security-for-cloud-based-enterprise-applications/ http://www.cisco.com/en/US/solutions/collateral/ns340/ns517/ns224/ns836/ns976/white_p aper_c11-543729.html http://www.cloudtweaks.com/2010/02/what-are-the-different-types-of-cloud-computing/ http://www.cloudtweaks.com/2010/03/mini-glossary-cloud-computing-terms-you-shouldknow/ http://www.cloudtweaks.com/2010/03/understanding-cloud-and-devops-part-1-the-cloud/ http://it.tmcnet.com/topics/it/articles/149092-cloud-computing-wont-boost-productivitymuch-study-suggests.htm http://informationweek.in/Cloud_Computing/11-0228/Infosys_converts_cloud_threat_into_opportunity.aspx http://informationweek.in/Cloud_Computing/11-02-16/TCS_does_a_Nano_launches_cloudbased_iON_for_SMBs.aspx http://itmanagement.earthweb.com/features/article.php/3927551/Cloud-ComputingsEnterprise-Challenges-Public-Private-Hybrid http://blogs.forbes.com/microsoft/2011/03/08/roi-of-the-cloud-part-2-iaas/ http://www.cloudtweaks.com/2011/03/vmware-delivers-new-operations-model-for-cloudcomputing-environments/ http://www.cfodailynews.com/cfos-intrigued-confused-about-cloud-computing/ http://www.hostway.co.uk/news/virtualisation---the-cloud/three-quarters-of-smes-do-notuse-cloud-computing-survey-reveals-800429238.html http://www.channelweb.co.uk/crn-uk/news/2029027/parallels-smbs-cloud-consideration http://www.channelprosmb.com/article/23386/Storage-Guardian-Introduces-Pay-As-YouCompute-Model-in-the-Cloud/
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http://www.processor.com/editorial/article.asp?article=articles/P3303/13p03/13p03.asp&gui d= http://www.crn.com/news/cloud/229100045/cloud-computing-in-midmarket-smb-sectorscreates-big-opportunties.htm;jsessionid=5fK9GN0LM7adSyUhPG0TNQ**.ecappj03 http://www.zdnetasia.com/reliability-remains-asia-s-smb-cloud-worry-62205876.htm http://www.eweek.com/c/a/IT-Infrastructure/IBM-Reports-Most-SMBs-Upping-Their-ITSpending-for-2011-479712/ http://www.channelweb.co.uk/crn-uk/news/2029027/parallels-smbs-cloud-consideration http://www.itbusinessedge.com/cm/blogs/vizard/degrees-of-hybrid-cloudcomputing/?cs=45724 http://www.itbusinessedge.com/slideshows/show.aspx?c=84778&slide=2

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10. Appendix
Questionnaire:

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